Ethereum's Explosive Rally, Coinbase Unlocks DEXs & The Post-CPI Macro Game

Description: This week, we're digging into the market's reaction to the latest CPI data and what it means for the macro landscape as we look ahead to the Jackson Hole symposium. We'll discuss expectations for the event, the ongoing debate around potential new Federal Reserve appointments, and provide an update on the tariff situation.

The main event in crypto is Ethereum's explosive +23% move on the week, with LDO moving in concert. We'll break down the key drivers behind the rally, including a massive $1.8 billion in ETF inflows, over $2 billion in large Digital Asset Trust (DAT) purchases, and a significant regulatory clarification that liquid staking derivatives (LSDs) will avoid security status. While ETH is technically overbought, we note that funding rates have not yet become excessively rich.

We then look at the future of the Ethereum ecosystem, providing an update on the staking exit queue and the evolving discussion around new products like staking ETFs versus the established DATs. We'll also touch on strong network fundamentals, with daily transactions averaging 1.7 million in August.

Finally, we have game-changing news from Coinbase. The company is rolling out DEX trading directly in the main Coinbase app for U.S. users, unlocking access to millions of on-chain assets, particularly on Base. In addition, Coinbase Asset Management is launching a second Stablecoin Bootstrap Fund to deepen liquidity across DeFi protocols like Aave, Morpho, and Jupiter.

Topics Covered:

• Macro & Policy:
  • Analysis of the latest CPI data.
  • What to expect from the Jackson Hole symposium.
  • The debate around potential new Fed chair appointments.
  • An update on the tariff situation.
• Ethereum's Massive Rally:
  • Unpacking the +23% move and LDO's performance.
  • Key Drivers: $1.8B in ETF flows and $2B in DAT purchases.
  • Regulatory Win: Liquid Staking Derivatives (LSDs) avoiding security status.
  • An update on the ETH staking exit queue.
  • Network Health: 1.7 million daily transactions in August.
• Coinbase News & Product Launches:
  • DEX Trading: Trading on-chain assets directly in the main Coinbase app.
  • DeFi Liquidity: The launch of a second Stablecoin Bootstrap Fund for protocols like Aave and Morpho.
  • A look at the AI tools being used at Coinbase.

CB Research

• Bitcoin, Liquidity, and Macro Crossroads

Speakers:
Ben Floyd, Head of Execution Services
David Duong, Global Head of Research
Colin Basco, Institutional Research
Ben Rodriguez, Senior Protocol Specialist

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